Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 02/01/2002, Docket: RP00-395-003, Status: Effective

Original Sheet No. 711 Original Sheet No. 711 : Superseded

RATE SCHEDULE DVS (Continued)

DELIVERY VARIANCE SERVICE

FORM OF SERVICE AGREEMENT

1.2 The MDVQ shall not entitle the Shipper to take Quantities

in excess of the MDCQ of the underlying Transportation Agreement(s).

1.3 If the DVS Party is a Shipper and the daily scheduling

variance at the Point of Delivery exceeds the tolerance level, the

MDVQ shall be added to the absolute value of the Shipper's calculated

tolerance Quantity for the underlying Transportation Agreement(s) as

provided under Section 12.11(h) of the General Terms and Conditions.

Any variance then remaining shall be allocated back to the underlying

Transportation Agreement(s) and shall be subject to the daily

scheduling charge.

1.4 If the DVS Party operates a Point of Delivery, the MDVQ

shall be added to the absolute value of the calculated tolerance

Quantity for the delivery meter as provided in Section 12.11(h) of

the General Terms and Conditions. Any variance then remaining shall

be allocated back to the underlying Transportation Agreement(s) based

on the predetermined allocation methodology for the designated Point

of Delivery and shall be subject to the daily scheduling charge.

ARTICLE 2 - TERM

This Agreement shall be effective from the date first stated

above. Panhandle shall provide firm delivery variance service for

the DVS Party pursuant to this Agreement from _____________ until

________________, when the term of this Agreement shall expire.

ARTICLE 3 - RATES AND CHARGES

For the services provided or contracted for hereunder, DVS

Party agrees to pay Panhandle the then-effective, applicable rates

and charges under Panhandle's Rate Schedule DVS filed with the

Commission, as such rates and charges and Rate Schedule DVS may

hereafter be modified, supplemented, superseded, or replaced

generally or as to the service hereunder. Panhandle reserves the

right from time to time to unilaterally file and to make effective

any such changes in the terms or rate levels under Rate Schedule DVS

and the applicability thereof, the General Terms and Conditions or

any other provisions of Panhandle's Tariff, subject to the applicable

provisions of the Natural Gas Act and the Commission's Regulations

thereunder.

From time to time Panhandle and DVS Party may agree in writing,

on a level of discount of the otherwise applicable rates and charges

hereunder, pursuant to the effective applicable provisions of Rate

Schedule DVS and subject to the Regulations and Orders of the

Commission. For example, Panhandle and DVS Party may agree that a

specified discounted rate shall apply: (a) only to certain

Quantities under this Agreement; (b) only if specified Quantity